A problem with the infant industry argument is that
A) it is too restrictive in targeting new industries to protect.
B) it does not protect the most important new industries in a country.
C) it is almost impossible to eliminate the tariff once the industry matures.
D) it allows infant industries to mature so that tariffs can be eliminated.
Answer: C
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Which of the following is a possible result of price confusion?
A. People are less able to take actions that mitigate the impact of monetary policy. B. Sellers will face pressure to provide more accurate pricing information. C. The price system becomes a less effective way to coordinate economic action. D. The signals that prices send become clearer and more necessary.
It has been argued that in the long run monopolistic competition is inefficient because
A) there are too many firms, each with excess capacity, producing too little output. B) there are few many firms, each with excess capacity, producing too much output. C) minimum average total costs are achieved but price exceeds marginal cost. D) minimum average total costs are not achieved and marginal cost exceeds price.